4 Vipin Choudhary 668 Research Communication MBA May 2012

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Available ONLINE www.vsrdjournals.com

VSRD-IJBMR, Vol. 2 (5), 2012, 213-222

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1,2,3Assistant Professor, Business Administrative Department, Doon Business School, Dehradun, Uttarakhand, INDIA.

*Correspondence : [email protected]

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Entrepreneurship and Challenges inGlobal Environment

1Vipin Chaudhary*,

2Sohan Singh Rawat and

3Pushkar Saxena

ABSTRACT

The last decade of the 20th

century has shown that modern changes can occur in a short period of time in a short

period of time in our modern economic history. If we look our rear view mirror, we will notice our bridges for

travel no longer constrain us to a limited portion of a specific state, country or Governing country. The roadmap

has been extended beyond borders, which has changed the scope of our national and global market place. Many

people have cruised the globalization steering wheel down the information superhighway. Many organizations

have sped this journey up through the development and changes of corporate compatibility. Some people have

placed their vehicle on cruise control making sure to stay on the path that on the path that leads through each

valley, Canyon, and causeway.

What is the purpose? Who will be the one behind the wheel establishing the new face of International

expansion? The spirit of international Entrepreneurship is a major contributing factor that has affected the way

people expands their horizons. No longer does one feel that their Road to Entrepreneurism stops within the

borders of their own country. The key elements of Entrepreneurial drive and the economical, political,

technological and social changes that have occurred over the last decade have dramatically created business

opportunities for global business.

Keywords :Entrepreneurship, Technology, Economic Compatibility, Global Market, International Markets.

1. INTRODUCTIONThe entrepreneurs provide a magic touch to different area, whether urban, rural, and international sector.

International Entrepreneurship has led pioneers and others down the paths of entrepreneurship freedom stopping

at every nook, corner, and valley to find out the opportunities that will unfold in todays emerging international


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markets.

2. ENTREPRENEURIAL COMPATIBILITYEntrepreneurial Drive is a society that is unlike other organizations existence in todays global economies of

scale. The Entrepreneurs passion is to conquer and seize opportunities that most individuals would not tackle

and do not have the emotions to stomach. Their motivation is one of pro-activeness in their initiatives to be a

steward for change through innovative products or services. They have a creative mind that can think

independently about ideas of success and failure. Most Entrepreneurs are known for their hard work and their

dedication to their respective businesses. Entrepreneurs have established themselves as taking risk and leaders of

optimism. These unique men and women make up a strong percentage of todays innovators to be the leaders of

global expansion in the 21st century.

3.

WOMEN ENTREPRENEUR

Women entrepreneurs have been making a significant impact in all segments of the economy in India, Canada,

Great Britain, Germany, Australia and the United States. The areas chosen by women are retail trade,

restaurants, hotels, education, cultural, cleaning, insurance and manufacturing The New Thrust suggests

following two factors pulling or pushing women in an entrepreneurship Factors leading women to be an

entrepreneur: Women entrepreneurs choose a Women takes up business enterprises to Profession as a challenge

and an get over financial difficulties and respond- adventure with an urge to do some - suability is thrust on

them due to family -thing new, liking for business and circumstances to have an independent occupation. With

the spread of education and new approaches/awareness, women entrepreneurs are achieving higher level of

3Es, namely: (i) Engineering (ii) Electronics (iii) Energy. Though we should not forget certain Psycho-Social

Barriers which hinders the growth of women entrepreneurs.

4. OPPORTUNITIES Free entry into world trade. Improved risk taking ability. Governments of nations withdrawn some restrictions Technology and inventions spread into the world. Encouragement to innovations and inventions. Promotion of healthy completions among nations Consideration increase in government assistance for international trade. Establishment of other national and international institutes to support business among nations of the world. Benefits of specialization.


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Social and cultural development

5. CHALLENGES Problems of raising equity capital Difficulty in borrowing fund. Thought-cut completions endangered existence of small companies. Problems of availing raw-materials. Problems of obsolescence of indigenous technology Increased pollutions Ecological imbalanced. Problems of TRIPS and TRIMS. Exploitation of small and poor countries, etc

6. SUGGESTIONS Govt. should provide separate financial fund of womens entrepreneur. We should provide her special infrastructure facilities whatever she deeds. Govt. should arrange special training programmers of women entrepreneurship Govt. should felicitate top ranked womens entrepreneur. Women entrepreneur should more competitive and efficient in the local & international market. Use should invite successful women entrepreneurs from foreign countries.

7. KEYS OF ENTREPRENEURIAL DRIVEEntrepreneurs have a unique form of identity from their inception as being leaders in our Business forefront.These keen attributes lead highly talented individuals to be less resistant to Change and provides them with a

burning desire of resiliency to succeed. The entrepreneurial Drive sets the table for everyone to have the

business savvy or opportunity to succeed.

The Key Ingredients to Entrepreneurial Drive:

Seizes opportunities for personal and professional benefit The creative Ability to develop business opportunities Entrepreneurs areIndependent thinkers


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Hard worker and so is their environment Optimistic-Uncertainty does not bother these types of individuals. Innovator- The strongest quality of an Entrepreneur The ability to be aRisk taker The ability of an entrepreneur linked to their leadership as a Visionary An Entrepreneur is aLeaderThe Entrepreneurial drive seizes opportunities that will benefit them both personally and professionally.

Entrepreneurs have a tendency to be a hard worker and they carry these same Expectations into their

environment. Optimism drives their spirit and the uncertainty does not bother these types of individuals. The

entrepreneurial spirit establishes ones ability to be a risk Taker and have a vision for the success of their idea.

They have to be innovators to the products. And services they sell and a leader that reflects the environment of

their strategic vision.

8. MULTI NATIONAL CORPORATIONS AND GLOBAL MARKETSFrom the late 1940s through the late 1960s, multinational corporations (MNCs) from the United States had

little competition in global markets In fact, Multinational corporations were The only forms of organizations

allowed eating in the lions den of China for several years.

Today, smaller firms have the created ability to develop business opportunities through smaller Companies who

take less resources and operational cost to secure an opportunity in the global Market space.

More and more American entrepreneurs are embarking on the road to China and many have found their

fortunes. Over the past two decades, as China has liberalized its economy, several large companies have

prospered by moving manufacturing into China or more rarely, by producing goods for the Chinese Market. ii.

Investments by major organizations like GM, Volkswagen and other major automobile manufacturers are

drastically expanding their Operations in China. The behemoths have faced several roads that are hard to

overcome because Of their intensive size and labor costs. The corporate streamline of a major multinational

Organization only absorbs the ideas of a loose idea thinker.

9. GLOBAL OPPORTUNITIES FOR SMALL BUSINESSESYet more than often not, major multi nationals have found making money in China considerably Harder than

expected. iii With intensive operational cost, small entrepreneurs and businesses have been able to seize the

opportunity in the international markets of China.

Many corporations have faced the difficulties of working with Multinational corporations and the powers of

strategic alliances in the China markets. Small businesses like Robert Kushners Pacific China Industries Ltd.

have been able to open the gates of China and have been well received in the Chinese market. One contributing


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factor to their success as a small business entrepreneur is the research and study time placed in the international

markets with a smaller team focus and a smaller scales strategy that has captured the short-term audience of the

Chinese market. iv Roberts personal savvy led him to China. His professional drive helped him to understand

the cultural differences that would lead to the expansion of his companys products and services.

10.THE ENTREPRENEURIAL TESTEntrepreneurial compatibility is influenced by people who think independently. The people who are outside the

box and have difficulty conforming to structure remove themselves from the foundation of a corporation. Some

major corporations embrace this spirit and formulate the ideas to be incorporated with their strategic plans and

vision. If they are unsuccessful in their environment, the entrepreneurial tendency is to take the optimistic

approach and leave the corporate structure and develop a flat structure with the correct environment for

business.

11.ECONOMICAL CHALLENGES OF INTERNATIONAL ENTREPRENEURSHIPThe economic compatibility that will lead the wave of International expansion through hearts of compassion and

new ventured entrepreneurs will have to adapt and change to the constant economic filters of geographic

economics. The issues offoreign trade have conducted barriers for entry for all opportunists who would like to

expand their business into global markets.

The United States has seen a rise in debt over the past few years. From mid-2000, the U.S. and global economy

has weakened significantly following one of the largest stock market declines in the postwar period, the terrorist

attacks of September 11, 2001, major internal combustion in major corporations leading to corporate failure, and

the wars in Iraq.

These economic events have played a significant impact on the judgment for idealist to produce opportunities in

the national and global markets. The economic picture in the United States has played a major role in the impact

on the emerging markets in Eastern Europe, Asia and Latin America. The United States budget deficit, global

interest rates, and the U.S. dollar have been exposed by the debt linked to the United State government and

policy. vi. It has developed adverse effects on short and long-term interest rates. The traditional distribution

structures in Japan, Europe and other countries have seen rapid changes to entry barriers into key markets for

small business that offer products and services

12.GLOBAL MARKET INTEGRATIONThe economic picture today is one of several bundled hot buttons. Each geographical region of the world now

has been integrated to the advancement in technology and services. This threshold has developed several key

communication channels that have broken down the environment of semantics and sparked the interest for

organizations to consider global integration.

Though many U.S. consumers associate globalization with leading multinationals like Coca-Cola or GE that

have huge operations in many countries, small businesses have actually been one of the main drivers of global


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integration. According to the U.S. Department of Commerce, between 1987 and 1999, the number of small and

mid-sized U.S. exporters more than tripled, to 224,000.

By 1999, 97 percent of American exporters were small businesses, though smaller exporters still only accounted

for one-third of total U.S. export sales.

13.GLOBAL INFLATIONAccording to Grolier's On-line Encyclopedia, Inflation is a process in which the average level of prices

increases at a substantial rate over a considerable period of time. In short, more money is required to buy a given

amount of goods and services. An understanding ofglobal inflation is key to build opportunities in international

entrepreneurship simply because it is a foothold to your revenue streamline in your international venture(s) of

business. For the first time in the history of the world, inflation is a universal phenomenon with all currencies

tied together.

Global inflation outlines the environment for which you formulate certain strategies as they affect different

segments of the global market space.

14.THE INTERNATIONAL ENTREPRENEUR POLITICAL PERSPECTIVEThe emerging global economy brings together unity and global nations, which provides outlets of competition.

Worldwide competition gives an opportunity for entrepreneurs as well as the buying consumer population. The

roadways that open also create a market capitalization which endorses free enterprise in new markets and small

markets that are considered large enough to become viable opportunities.

The main concern of the 21st century will be the geopolitical forces that monitor and issue policy for the

exchange of goods and services in the global markets. As competition develops in certain markets the

contingency forprotectionism will become the hot button in most respective markets. The passions for trade will

grow and has already established this trend in the last decade of the 20 th century. The economies of

industrialized world have entered their mature state of the product life cycle and will be more than modest over

the next twenty years.

The Organization for Economic Cooperation and Development estimates that the economies of the OECD

member countries will expand about 3 percent annually for the next 25 years, the same rate as the past 25 years.

ix. Organizations like the World Trade Organization (WTO) were formed to help the social, political, and

economic changes that will lead the global economy to the future victories in the International Trade and Policy.

When an entrepreneur is formulating a strategic decision to enter a global market you should keep in mind the

different geopolitical challenges. You should know your state of controllable and uncontrollable initiatives when

entering a market. With the continued strengthening for opportunities in international entrepreneurship one must

focus on the continued strengthening and creation of regional market groups:

15.EUROPEAN UNION (EU) NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)ASEAN FREE TRADE AREA (AFTA) FREE TRADE AREA OF AMERICA (FTAA)


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SOUTHERN CONE FREE TRADE AREA (MERCOSUR) ASIA-PACIFIC ECONOMIC

COOPERATION (APEC)

The market groups have enabled entrepreneurs into emerging markets and help to protect policy and practices of

business worldwide. Entrepreneurs will constantly have to examine the way they conduct business and remain

flexible enough to react to the rapidly changing global trends to be competitive.

When an entrepreneur seizes an opportunity in global markets there are several factors he or she should consider

to entering an emerging market for global business:

.

16.SOCIAL AND CULTURAL DIFFERENCES IN INTERNATIONAL MARKETS :CORPORATE CULTURE AND ENTREPRENEURSHIP

Since the 1990s, the need to pursue corporate entrepreneurship has arisen from a variety of pressing problems

including: technological changes, innovations, and improvements in the marketplace.

The Corporate Culture has also formed a relative deprivation towards many entrepreneurial spirits that exist in

this organizational culture. The spirit of the entrepreneur has perceived weakness in the traditional methods of

corporate management. Most of this is caused by power and influence from top-level management and corporate

streamlining. The chain of command takes control and the end result is the loss of entrepreneurial-minded

employees who are disenchanted with bureaucratic organizations.

The bureaucracy enables other organizations to find opportunities and opens the door for organizations that

possess a flatter structure. The word globalization has helped link doors that used to be closed. New

technologies and the pursuit for core competencies has led to growing levels of international competition

The pursuit of corporate entrepreneurship as a strategy to counter these problems, however, creates a newer and

potentially more complex set of challenges on both a practical and a theoretical level. On a practical level,

organizations need guidelines to direct or redirect resources towards establishing effective entrepreneurial

strategies. On a theoretical level, researchers need to continually reassess the components or dimensions that

explain and shape the environment in which corporate entrepreneurship flourishes.

17.WORKFORCE DIVERSITY AND GLOBALIZATIONOrganizations understand that they are no longer constrained to their natural national borders. A British firm

owns Burger King, and McDonalds sells burgers in many different eastern countries. American companies

receive almost 75 percent of their revenues from sales outside the United States. xiv. These examples illustrate

that the world has become a global outlet and community. In return, entrepreneurs have become capable of

working with people from different cultures. Globalization has led many organizations to adapt to working with

people of different ethnic decent and understanding the opportunities to work with managers in different

markets representing different cultures. To work effectively in different cultures, entrepreneurs must understand

the significance of the cultures they wish to build relationship and customer rapport as well as adapt theirmanagement style to their differences.


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18.THE TECHNOLOGICAL EFFECT ON INTERNATIONAL ENTREPRENEURSHIPTechnology has been a key to help moving products from manufacturer to end-user, providing local inventory,

technical product support, sales and service. Technology moves at a record pace and sometimes when obtained

is already obsolete. In todays world technology is a challenging and ever evolving field. New computer

technologies, increased competition and continued growth in global markets make today's opportunities to

entrepreneurism remarkably different from what it was only a few years ago

19.WHAT CAN BE LEARNED? SUCCESSFUL BUSINESS OPPORTUNITIES ININTERNATIONAL ENTREPRENEURSHIP

Most people understand the challenges they face when they opt to go into business for themselves. Everyone

knows the road of having success in the corporate environment of small, medium and large corporations . Free

Enterprise has been an incredible advantage to Americans in our national democracy. The freedom of private

business to organize and operate for profit in a competitive system without interference by government beyond

regulation necessary to protect public interest and keep the national economy in balance only exists in

democratic forms similar to the United States. So how does that affect pursuing opportunities in our global

society? Our assumption must take us back to the most important questions that anyone pursuing or seeking a

business opportunity must face. Do you know if you are entrepreneurial compatible?

20.ENTREPRENEURIAL SAVVYThe professional benefit of being successful with an International business opportunity will depend on ones self

as well as enabling others to act and share in the creative of the organizations mission. The entrepreneurial

drive must lead others to understand their importance of ownership and empowerment in the organization. They

must ask as stewards who understand the organizational culture and environment. The organization as a whole

must be optimistic and look for the opportunity to produce results. The entrepreneurial leader must model the

way for the organizational community to understand their vision and purpose. Allot of soul searching will

transpire for the entrepreneurial drive to catch on as a fever that is burning hot through their entire

organizational community. Encouraging others and building an organizational environment that shares the

optimistic uncertainty with a vision end mind will lead to a successful organization in today and tomorrows

global society.

21.ALTERNATIVE APPROACHES OF INTERNATIONAL ENTREPRENEURSHIPThe International Entrepreneur must know that he will place allot of emphasis on work ethic through the power

of a vision or growth image even if it is only an illusion. In perhaps the most crucial strategy that must be set in

motion early for a business opportunity to be successful from its embryonic beginnings.

The opportunities for business opportunities in the international market place for an entrepreneur are not as

challenging as they were just one decade ago. There are several alternative approaches that can be utilized as a

competitive advantage for the emergence into global markets.

The Internet and its expanding role in International markets


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The Political and Social Integration of big emerging Markets (Asia, Eastern Europe, Japan, and China). The economic spurt evolving in global middle-income households. The collaborative qualitative and quantitative research conducted by organizations through strategic

alliances, corporate and functional development in major corporation and small business.

Trends in channel structures in Europe, Japan, and developing structures Ethics and Social Responsibility in todays global environment.An entrepreneur must understand all of the facts and assumptions to entering his idea into the global market

space. Once this steward has assessed their organizational core competencies, they must evaluate the alternative

approaches to make a successful launch into the 21st century with their newfound business product or services.

These strategies will be discussed in later chapters of this book. The Macroenviroments, Economical, Political,

Social, and Market driven/technology demands need to be examined as possible causal factors in the success or

failure of international entrepreneurship. The right drive, the right passion and the right strategic window will

lead unique men and women to be the revolutionary business leaders of global expansion in the 21st century.

22.FUTURE SCOPEKey areas for an entrepreneur to understand when researching opportunities in global markets:

1. Understanding the balance of trade relationship between merchandise imports and exports in prospectivetarget markets.

2. Extensive research on the political forces of the global environment to have alternatives outlines forstrategy and implementation for barriers to enter market(s).

3. Understand the development of domestic industry and how countries will protect existing industry beestablishing tariffs, quotas, boycotts, monetary barriers, non-tariff barrier, and market barriers.

4. The market groups and research techniques will be explored in later chapters of experimental exercises andthe areas of study chapters of this book. The Political and Legal issues for an entrepreneur will be a

challenging process for one to win in their quest for International emergence for global markets

23.REFERENCES[1] Pride, W, Ferrell, O.C, Marketing and its Environment. Marketing Concepts and Strategies (Boston:

Houghton Mifflin Company, 2000). PP 79-107.

[2] P. Cateora, J. Graham, International Marketing 10th Edition (Boston: McGraw-Hill, 1999).[3] J. Kurlantzick Promised Land,Entrepreneur Magazine, January 2004, pp66-69.[4] J. Kurlantzick Promised Land,Entrepreneur Magazine, January 2004, pp66-69.[5] J. Kurlantzick Promised Land,Entrepreneur Magazine, January 2004, pp66-69.[6] Choon Lee, The Global Implications of the U.S. Fiscal Deficit and of Chinas Growth, World Economic

Outlook, April 2004, p. 63.


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[7] Choon Lee, The Global Implications of the U.S. Fiscal Deficit and of Chinas Growth, World EconomicOutlook, April 2004, pp. 63-66.

[8] Joshua Kurlantzic, International Success in Todays World Economy, Entrepreneur Magazine, February2003.

[9] Joshua Kurlantzic, International Success in Todays World Economy, Entrepreneur Magazine, February2003.

[10]Robbins, Stephen P, Challenges and Opportunities of Organizational Behavior, Organizational Behavior10th Edition (New Jersey: Prentice Hall, 2003), p. 14

[11]P. Cateora, J. Graham, Dynamic Environment of International Trade, International Marketing 10thEdition(Boston: McGraw-Hill, 1999), p. 40

[12]Miller, D., & Friesen, P. (1985). Innovation in conservative and entrepreneurial firms: Two models ofstrategic management. Strategic Management Journal, 3, 1-25.

[13]Hayes, R. H., & Abernathy, W. J. (1980). Managing our way to economic decline. Harvard BusinessReview, July-August, 67-77.

[14]Adapted from www.cisco.com/archives/newsreleases/ Cisco Systems. June 2001[15]Kanter, R. M. (1985). Supporting innovation and venture development in established companies. Journal of

Business Venturing, 1, 47-60.

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4 Vipin Choudhary 668 Research Communication MBA May 2012